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“Everyone who signs up to the loan will continue to get help with their mortgage interest, and it’s only repayable if there is available equity when the property is sold.

“If people decide to decline the loan now but change their mind in future the loan can be backdated so in effect there would be no break in payments.”

What is this benefit?

Support for Mortgage Interest (SMI) was a benefit for people who fall on hard times and are struggling to keep up their mortgage payments.

It had existed in some form since at least the 1980s and was being paid to just over 100,000 people.

(Image: Rui Vieira/PA Wire)

To qualify you had to be on one of these benefits: Income Support, Pension Credit, income-based jobseekers' allowance or income-based disability benefit ESA.

The benefit could only cover interest charged by a bank, not the capital value of a house. It was paid up to a total of £200,000, or £100,000 for pensioners.

What's changed?

The free benefit has been turned into a repayable loan since 6 April 2018, a cut of £150million a year.

That means if you accept help, you'll have two loans secured on your home at the same time. One from the bank, one from the government.

As you grow older, the amount you owe the government will get bigger and bigger. That's because the interest on the government loan will be set at the 'forecast gilt rate' - last summer it sat at 1.7%, but was expected to rise at some point.

The big difference between the government loan and a mortgage is this: the government's loan won't have to be repaid each month.

Instead the full amount is only due as soon as you die, sell your house or transfer ownership of it to a relative or friend.

The exception is if you die and have a husband or wife or civil partner. In that case, the loan only has to be paid back after they die too.

There are transitional protections in place for people who haven't yet made a decision about their SMI.